TORONTO, Nov. 2, 2021 /CNW/ - First Mortgage LP ("FMLP"), an alternative residential mortgage lender focused on prime borrowers, today reported on its progress since launching its operations in March 2021, including the appointment of a majority independent board of directors (the "Board") at FMLP's general partner, First Mortgage GP Inc. (the "GP"), and the appointment of a strategic advisor to the Board. In addition to the independent Board, the GP has also formed an advisory committee for FMLP (the "Advisory Committee"), with the members of such Advisory Committee consisting of the independent members of the Board and the strategic advisor to the Board.
Since its inception seven months ago, FMLP has funded 103 mortgages totalling approximately $65 million, while experiencing no mortgage arrears. Following a strong September in which FMLP funded 21 mortgages totalling approximately $12 million, its current portfolio stands at 97 mortgages with an aggregate value of $61 million. The weighted average loan-to-value of the portfolio is 68.5%, and the weighted average term to maturity is 8.8 months as at September 30, 2021. FMLP is exclusively focused on prime borrowers, as evidenced by its portfolio having a weighted average credit score of 810 (Equifax Score).
Administrative services, including mortgage origination, mortgage servicing and certain other services are provided to FMLP by MCC Asset Management Inc. ("MCC"). MCC leverages its third-party mortgage brokerage relationships and affiliated mortgage brokerage for quality first mortgage origination. MCC is also the administrator of Mortgage Company of Canada Inc., a mortgage investment corporation that has grown from its inception in 2013 to over $500 million in assets as of September 30, 2021. FMLP targets an annual yield to investors of 6.0%.
The Board comprises five individuals, three of whom are independent. In addition to the two management appointees, Founder and CEO Raj Babber and President Faheem Tejani, the Board includes Chris Taves, Neha Verma and Tim Wilson.
Chris Taves, CPA, CA, is an experienced business executive with more than 30 years of professional experience in capital markets and financial industries. He is currently a special advisor to the CEO and Executive Committee of BMO Capital Markets. Mr. Taves has held various roles at BMO over the last 13 years, most recently as the Chief Operating Officer of BMO Capital Markets from 2018 to 2020 and Head of BMO's global trading business from 2016 to 2018. Prior to joining BMO, he worked in progressively senior roles at Citigroup for 11 years. Mr. Taves is currently a director of MediPharm Labs Corp. and Armagh, a transitional home for women who have experienced violence.
Neha Verma is an experienced business executive with more than 15 years of professional experience in investor relations and capital formations. She is currently the Canadian Head of Client and Capital Formation at TPG Capital. Prior to joining TPG Capital, Ms. Verma worked at Onex Corporation as Principal, Investor Relations and Fund Development and at Ellington Management Group for eight years, most recently as Vice President, New Business Development and Investor Relations. Ms. Verma is the co-founder of K.I.D.S. IQ Project, a foundation launched in 2016 to raise funds towards curing cognitive disorders in children.
Tim Wilson, CPA, CA is an experienced business executive with more than 19 years of professional experience in the mortgage and financial industries. He is currently the Chief Financial Officer of RF Capital. Mr. Wilson previously served as the Chief Financial Officer of Equitable Bank. Prior to joining Equitable Bank, he worked at Visa for five years, most recently as President of Visa Canada from 2008 to 2011. Mr. Wilson has also worked in various roles at CIBC, Monitor Group, and Ernst & Young. He formerly served as the Vice-Chair of Board of Trustees and Chair of Finance Committee for the Royal Ontario Museum.
"We are excited that Chris, Neha and Tim have joined First Mortgage GP's board of directors and FMLP's advisory committee," said Mr. Babber. "We are already benefitting from their depth of experience in the Canadian financial and mortgage markets, as well their expertise in business oversight. We look forward to their continued contributions."
FMLP also announced that Daniel Drimmer will serve as strategic advisor to the Board and will join the Advisory Committee. Mr. Drimmer is the founder, President and Chief Executive Officer of Starlight Investments, a Canadian real estate asset manager with more than 300 employees and $20 billion of assets under management, encompassing more than 70,000 multi-family units and eight million commercial square feet across Canada and the United States. Over the last 10 years, Mr. Drimmer has completed more than $30 billion of acquisitions and dispositions in residential and commercial real estate, including nine initial public offerings. "MCC's management team has benefitted from Daniel's counsel over the past 8 years," added Mr. Babber. "We are thrilled that he has agreed to this role with FMLP."
About First Mortgage LP
First Mortgage LP is a Toronto-based limited partnership that invests in income-producing residential first mortgage loans. FMLP requires that borrowers have a minimum credit score of 680 or higher and that the Loan-to-Value ratio of each mortgage is not greater than 75%. FMLP currently targets a minimum annual yield of 6.0%, providing its investors with stable monthly distributions while preserving capital by lending within conservative risk parameters. Please visit www.firstmortgagelp.com for more information. Units of FMLP are only offered to eligible investors under certain prospectus exemptions provided under applicable securities laws and are available through registered dealers only. Prospective investors should review FMLP's current offering memorandum with their advisors carefully before making a decision to invest.
This press release may contain "forward looking information" that is based on expectations, estimates and projections as of the date hereof. Such information involves risks and other factors, including general economic and market factors, including credit, currency, political and interest-rate risks, that may cause actual results to be materially different. Neither FMLP nor MCC have any specific intention of updating any forward-looking information. A description of the material risks that FMLP faces is set out in FMLP's current offering memorandum.
SOURCE First Mortgage LP
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